Metro Pacific Tollways Corp. (MPTC) expects to finalize the acquisition of a 35-percent stake in an Indonesian state-owned toll road operator by July or August 2024.
“We are the preferred bidder, so we are in the process of negotiating with Jasamarga Transjawa Tol [JTI]. Hopefully, we can close the negotiation in one month, if they awarded the contract by end of May and hopefully close by July or August,” MPTC chief finance officer Chris Lizo said.
Lizo earlier said the estimated value of the 35-percent stake in the company that owns 13 toll roads is between $1 billion and $1.5 billion.
JTI has the largest connected toll road network in Java. It operates 13 toll sections spanning 676 kilometers.
All JTI’s toll roads have been fully operational since 2019, with an average 35 years of remaining life in the concession.
MPTC teamed up with Singapore sovereign fund GIC for the acquisition of the stake in Jasamarga.
Under the proposed partnership, MPTC’s Indonesian subsidiary will acquire 20.3 percent of the 35 percent to be purchased, while GIC will own 10.3 percent. MPTC-led PT Margautama Nusantara will take the remaining 4.2 percent.
GIC recently invested in MPTC’s toll road unit in Indonesia, acquiring 33 percent.
MPTC also bagged a new concession project in Indonesia last year, which involves a 21.5-kilometer elevated toll road worth $1.4 billion.
The project will commence this month and will be completed by January 2028. It will have concession life of 45 years.